The Accounting Review Vol. 100 No. 1 2025

CEO Risk Taking Equity Incentives and Workplace Misconduct

Justin Chircop¹; Monika Tarsalewska²; Agnieszka Trzeciakiewicz³

¹ Lancaster University · ² University of Exeter · ³ University of York

Abstract

We examine the relation between CEO risk taking equity incentives, as captured by CEO vega, and workplace misconduct. Workplace misconduct includes health and safety violations, non-compliance with labor laws, and other violations broadly related to labor exploitation, and it results in significant economic costs. Using regression analysis, matched sample tests, and a quasi-natural experiment, we find a positive relation between CEO vega and workplace misconduct. We identify a reduction in discretionary expenses and increased employee workload as channels through which CEO vega affects workplace misconduct.

DOI

10.2308/tar-2020-0648

Volume

100

Issue

1

Pages

139-167

Language

en

Sources

bibtex:phds-export.bib crossref openalex

Cite

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